EUR/USD in a bearish consolidation phase just below 1.0400

The EUR/USD pair is seen moving back and forth in a narrow range just below 1.04 handle, closely tracking the upside consolidation phase seen in the US dollar against its major peers.

EUR/USD: Yearly lows still eyed

Currently, EUR/USD drops -0.15% to 1.0387, having struck session lows at 1.0375 in early trading. The main currency pair is stuck in a tight range and keeps the offered tone intact, as the bears gather pace before the next leg lower amid persistent broad based US dollar strength, in wake of fresh buying interest seen around the US treasury yields.

Moreover, a slightly upbeat tone seen around the European equities also continue to exert downward pressure on the euro, keeping any recovery capped in EUR/USD. However, the downside appears cushioned for now, as better-than expected German PPI and Eurozone current account data offer some support to the EUR bulls.

Amid a data-dry calendar and thin liquidity conditions the moves in the major be exaggerated, while USD strength continues to dominate markets.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0418/20 (daily high/ 5-DMA). A break beyond the last, doors will open for a test of 1.0458 (daily R1) and from there to 1.0500 (round figure). On the flip side, the immediate support is placed at 1.0366 (yearly/ 14-yr lows) below which 1.0335 (daily S2) and 1.0300 (key support) could be tested.